Agreed.
Shorting allows a long holder (who wishes to maintain their long holding over the long-term) to hedge against their position over a shorter time frame WITHOUT selling their long holdings and potentially triggering a CGT event &/or resetting the 12-month CGT discount timer.
Buying 'put' oppies could achieve a similar hedging mechanism, but oppies suffer from time decay and transact in the synthetic (oppies) market. Shorting, on the other hand doesn't experience decay and the position is opened/closed in the primary (equities) market.
And that's only talking about pure hedging without considering the possibility that a LT holder might want to take a separate punt to take advantage of some seasonal/cyclic SP weakness, which @Fr3sno has alluded to.
There are many ways to skin the cat in this game. Don't fall into the trap of narrow thinking.
Agreed.Shorting allows a long holder (who wishes to maintain...
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Last
$5.31 |
Change
0.040(0.76%) |
Mkt cap ! $4.021B | |||
| Open | High | Low | Value | Volume |
| $5.26 | $5.39 | $5.26 | $10.00M | 1.881M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 17 | 17916 | $5.31 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $5.33 | 15386 | 1 |
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| Last trade - 16.10pm 27/08/2024 (20 minute delay) ? |
| IGO (ASX) Chart |